Which of the following fiscal programs is least likely to increase aggregate demand?
What will be an ideal response?
an increase in taxes
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The group responsible for deciding on monetary policy is the
A) Federal Advisory Council. B) Board of Governors only. C) Federal Open Market Committee. D) group of 12 Federal Reserve Bank presidents only.
Assume that two individuals, A and B, are willing to trade products X and Y. Before a possible trade, A has the following marginal rates of substitution of X for Y (or of Y for X): MRSXYA = 0.80 (or equivalently, MRSYXA = 1.25)
Also, before a possible trade, B has these marginal rates of substitution of X for Y (or of Y for X): MRSXYB = 1.50 (or equivalently, MRSYXB = 0.67). Determine if trade can take place that would benefit either or both. If trade can benefit either or both, determine who will trade for what.
Most economic forecasts
a. are accurate b. are more reliable than weather forecasts c. rely on mathematical models d. are totally unreliable because economic changes upset outcomes e. are based on ceteris paribus assumptions
Explain how to derive the demand for an input